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Mad come to Investment Scandal Case Analysis Chenona D. Artis Assignment 4 March 14, 2010 Background The Bernard L. Madoff shite has report to be virtuoso of the most widespread and financially waste Ponzi scheme in history. The operating principle of this scheme is to continuously attract late investors to pay off old investors the increases they were promised. Although whatever arrive at set forth Madoff as a charismatic and guarded earth who treated his employees like family. Underneath it all critics have described Madoff as a greedy manipulator so hungry to accumulate wealth that he did not bring off who he hurt to get what he wanted (www.nytimes.com). on that point were many stakeholders (victims) affected by this horrible scandal including lucky entrepreneurs, organizations and nonprofit charitable organizations who reportedly lost trillions of dollars by means of invest with Madoff. Most of these charitable organizations were tax-exempt under p ercentage 501(c)(3) of the natural Revenue Code and were forced to end their operations. new(prenominal) stakeholders embarrass Bankers such as HSBC who lost over $1billion caused by loans it provided to institutional clients that wanted to invest with Madoff. These investors/clients of HSBC invested some $500 million of their sustain funds in Bernie Madoff.

Unfortunately since the US governance vulcanized funds from Madoff, HSBC clients lost all of the property that they invested. Madoff overly caused members of unsophisticated clubs to lose over $100 million dollars combined. Madoffs sons countenance an d Andrew morose their father in after he ad! mitted to them that the character of the enthronisation devoted was fraudulent. Neither one of them had money invested in the firm at the time of its demise. Madoff was considered to be a money focussing legend who many people trusted and believed that he would induct them rich. Little did they know he only was bear on about making a profit for himself at the get down of their wealth. effectual Analysis Consumer protection...If you want to get a all-inclusive essay, order it on our website: OrderCustomPaper.com

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